Daily Profit Compass June 26

Tickers discussed: SPY QQQ IWM EURUSD CYBR

The Daily Profit Compass provides the stock market analysis for the day. Key levels and trading locations for the indexes are provided, along with trading plans and timely commentary to keep you on the right side of the trade.

Abbreviated Daily Profit Compass

A shortened version of coverage today. Back to normal format on Monday. Thanks for your patience and understanding.

Sector Snap Shot

Financials / Banks did well on relaxation of certain aspects of Volker Rules, but then AH some of the enthusiasm was drained on the stress test results. Q3 buybacks will not be permitted and divvies will be capped. Banks will individually reveal their stress test results beginning next week.

News Flow

  • Virus continues to run as decision-makers in hotspots pause re-opening
  • White House Covid Task Force meeting scheduled for 12.30pm
  • $VZ indefinitely suspending $FB ads as boycott momentum picks up steam.

Sector Review:  Levels, Triggers and Targets

I did a chart update on the top 5 sectors yesterday. If you missed it, you can find it HERE

Charts in Focus

EURUSD – Euro / USD Currency Pair 

THe Euro is the largest component of the Dollar index.   Higher Euro, lower Dollar.  All eyes are on the Euro and $USD.  The way this chart breaks will send deep shock waves through many markets.  Many world forces WANT a weaker $USD.  While it’s fractionally off it’s recent high, there are lots of central bankers across the world who’d like to see this chart move to the top of the symmetrical triangle around $1.185-1.200.   Because the $USD is the ultimate safe haven currency, any global downturn will likely pile people back in to strengthen the green back despite Jerome Powell printing money like it’s going out of style.  Watch this chart or one of the $USD, even if you don’t trade it.  They say if you get the direction of the Dollar right, your investing just got a whole lot easier as the Dollar Dominoes will all fall in line.

$CYBR

Aside from $CRWD which continues to rip the cover off the ball, cyber security  stocks like $CYBR, $PFPT, $FEYE look like crap. Featured here is $CYBR. Price finds itself working towards the apex of a descending triangle which is a bearish structure.  Price is below all the moving averages and is pressing against support at $95.  I’ve projected a measured move on a breakdown that points to down around $80. I am alarming $95 for a potential short idea.    On the bullish side, a break above the well-defined downtrend line would likely spark a rally. Because of the proximity of all the moving averages, I am not interested in going long until price can prove it can take out it’s 200ema at $105.50.   I am setting an alarm at $105.50 for a potential long trade.  On a move above $105.50 I can see a move to the prior high at $115.

 

Index Chart Review

Bulls re-asserted themselves yesterday and foiled a bear flag set up. Today it will be interesting to see just how much risk appetite exists in front of a weekend when covid headlines have re-emerged.  Those potential Sunday night gap downs are killer if you’re loaded to the gills with risk -on positions.

SPY 2 hour

SPY 30 min

QQQ 2 hour

QQQ 30 min

IWM 2 hour

IWM 30min

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